Royal Commission into Trade Union Governance and Corruption hears unions tried to “kill” crane company owned by Albert Smith

UNION heavyweights set out to “kill’’ a company after it went on a blacklist that swiftly destroyed construction outfits financially, a Royal Commission heard yesterday.

Whistleblower and crane company boss Albert Smith, the first witness to take the stand at the Brisbane sitting of the Royal Commission into union graft, said even when he bowed to union demands, pressure only intensified.

As owner of a cluster of companies and with 30 years experience across worksites in the Pacific, Mr Smith said a CFMEU blacklist was not a good place to be for a small-business owner.

“That is not a good reputation to have,’’ he said.

The inquiry was told the union intended to “kill’’ his company in Darwin and “kick them out of Townsville’’.

“I did not approve of this agreement however, as I was told, it was necessary in order to ensure industrial peace with the CFMEU...’’ he said.

His problems began in about 2003 when he challenged the effectiveness of the union’s redundancy and training programs. Up to $500,000 was being paid to unions to assist with training.

“But my understanding is that most of the money was spent on administration and only small percentage funded actual training,’’ he said.

Mr Smith also wanted to organise his own redundancy fund, partly because the union fund allowed redundancy payments from the first day of service while construction award entitlements required such payments to kick in only after two years.

“I am motivated to long term employees ... so I wanted to have a severance pay arrangement which encourages longer service.’’ After union intimidation began, Mr Smith said his business dried up and he bowed to the union, even offering workers a dollar an hour extra to join the union.

He denied his problems stemmed from his desire to control his workers and cut wages and conditions.